Container Terminal Planning & Operations Current …...Container Terminal Planning & Operations...

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Container Terminal Planning & Operations Current and Coming Trends AAPA Marine Terminal Management Training Seminar September 17-21, 2012 Baltimore, Maryland Thomas Ward, PE/SE Chief Engineer Ports America

Transcript of Container Terminal Planning & Operations Current …...Container Terminal Planning & Operations...

Page 1: Container Terminal Planning & Operations Current …...Container Terminal Planning & Operations Current and Coming Trends AAPA Marine Terminal Management Training Seminar September

Container Terminal Planning & Operations Current and Coming Trends AAPA Marine Terminal Management Training Seminar

September 17-21, 2012

Baltimore, Maryland

Thomas Ward, PE/SE

Chief Engineer

Ports America

Page 2: Container Terminal Planning & Operations Current …...Container Terminal Planning & Operations Current and Coming Trends AAPA Marine Terminal Management Training Seminar September

Trends

• Bigger Ships, Again

• Automation

– Tactical

– Strategic

• Privatization Public-Private Partnerships

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The Big Ship Challenge

• Big Ships. Really Big Ships.

• Again

• The “Maersk Challenge”

• Again

• 6,000 vessel lifts in 24 hours? Sure! No Problem!

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6,000 Lifts in 24 Hours: Vessel Flow

• 250 boxes / hour across the apron

• In a “typical” U.S. Import/Export facility:

– 5,400 import load TEUs with 3.6 days dwell

– 3,600 export load TEUs with 6.0 days dwell

– 1,800 export empty TEUs with 5.6 days dwell

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6,000 Lifts in 24 Hours: Yard Space

• Peak storage demand, for one call/week:

– 5,200 import load TEUs

– 4,500 export load TEUs

– 2,200 export empty TEUs

– 1,000 depot empty TEUs

• 37 acres / 15 hectares net CY at maximum credible density

• 47 acres / 19 hectares gross terminal area

• For just one ship/week

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6,000 Lifts in 24 Hours: Yard Flow

• Waterside on the day of the call:

– 3,000 import loads discharged

– 2,000 export loads loaded

– 1,000 export empties loaded

• Landside (for two successive calls):

– 900 import loads delivered

– 700 export loads received

– 600 empties received

• Yard Volume: 8,200 lifts in 24 hours:

– 340 lifts/hour with uniform 24-hour gate operation

– 560 lifts/hour with SoCal 16-hour gate operation

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6,000 Lifts in 24 Hours: Machines

• Import RTGs:

– 20 lifts/hour vsl, 10 net lifts/hr gate

– 22 machines

• Export Top-picks:

– 20 lifts/hour gate or vessel

– 18 machines

• About one machine every 300 ft (100 m) of storage row, about seven 40’ bays apart

• About 400 circulating waterside and landside vehicles at any one time

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But then, there are…

• …more than one ship per week

• …variable ship schedules

• …unreliable export bookings

• …10% to 12% loaded reefers

• …“hot” intermodal rail traffic

• …“hot” key-customer traffic

• …special security scans (VACIS, etc.)

• …customs holds, productivity variations, weather, and other random factors

• All making the situation much tougher

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Page 9: Container Terminal Planning & Operations Current …...Container Terminal Planning & Operations Current and Coming Trends AAPA Marine Terminal Management Training Seminar September

Impact of Call Duration on Peak Storage

Type Duration VF Storage Impact

Import 1 days 0.96 5,180

5,400 TEUs 2 days 0.87 4,700 91%

3 days 0.81 4,370 84%

Export 1 days 1.24 4,460

3,600 TEUs 2 days 1.15 4,140 93%

3 days 1.08 3,890 87%

Fulls 1 days 9,640

9,000 TEUs 2 days 8,840 92%

3 days 8,260 86%

• Stretching duration:

– To two days saves 8%

– To three days saves 14%

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Page 10: Container Terminal Planning & Operations Current …...Container Terminal Planning & Operations Current and Coming Trends AAPA Marine Terminal Management Training Seminar September

Impact of Call Two-Call Interval on Storage

• Decreasing vessel interval from three days:

– To two days increases demand 8%

– To one day increases demand 15%

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Type Interval VF Storage Impact

Import 1 days 1.74 9,400 120%

5,400 TEUs 2 days 1.64 8,860 113%

3 days 1.45 7,830

Export 1 days 2.30 8,280 109%

3,600 TEUs 2 days 2.19 7,880 104%

3 days 2.11 7,600

Fulls 1 days 17,680 115%

9,000 TEUs 2 days 16,740 108%

3 days 15,430

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Thruput, Density, Velocity, and Safety

• 6000 lifts/day = 560 lifts/hour = 15 lifts/hour/acre

• “Keep it simple, stupid” (KISS), is no longer viable

• Every utilization of every storage and production slot will need to be:

– Planned in advance

– Dynamically managed

– Automatically allotted in real time

– Optimized for productivity

– Constrained by safety

• Whether the terminal is manned or automated, its management will have to look automated…

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Automation

• To date, automation in the U.S. has been “tactical”:

– Optical character recognition

– Inventory control

– Equipment tracking and coordination

– Equipment assignment

• In Europe, automation has also been “strategic”:

– Automation of equipment operations

– Automated rail-mounted stacking cranes

– Automated guided vehicles

– Automated strads and shuttles

– Semi-automated dock and yard gantries

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Tactical Automation

• Substantial penetration of USWC

• Potential spread to USEC, depending on ILA pact

• Substantial reduction or elimination of “clerk”-type activities and manning

• Next steps:

– Installation of “driver assist” technologies on RTGs

– Emulation to optimize operational strategies

– Intelligent yard equipment assignment

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Strategic Automation

• Currently only one terminal with strategic automation in the U.S.: Portsmouth, Virginia

– Using Automated Stacking Cranes (ASCs) + manned strad

• Coming soon:

– TRAPAC, Los Angeles: ASCs + automated shuttles

– Middle Harbor, Long Beach: ASCs + auto guided vehicles

– Global Terminals, New York: Jim Devine

• Other Potentials:

– Pier S, Long Beach: ASCs + automated shuttles

– Berth 305, Los Angeles: ASCs + AGVs

– Deltaport 2, Vancouver, BC

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Pier S Plan

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Pier S Plan

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Traditional Economics

• Terminal infrastructure is expensive and fixed

• Infrastructure bought by Port and leased to Tenant/Operator

• Infrastructure cost recovery thru lease, wharfage, and dockage

• Equipment is relatively cheap and portable

• Equipment bought and maintained by Tenant/Operator

• Labor is expensive, tactical, variable, and complex

• Labor is hired and managed by Operator

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Automated Economics

• Infrastructure still expensive, but now tied to Tenant-specific automation scheme

• Equipment and automation control is much more expensive, and no longer portable

• Regular labor is reduced, and has a very different assignment pattern

• Management labor is increased, requiring more skills, training, and sophistication

• The economic model is very different

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Economic Models

• Traditional:

– Port is doing a “CapEx Recovery” via the lease

– Operator is doing “OpEx Recovery” through operating contract with the liner, marking up labor costs

• Automated:

– Port is still doing a CapEx Recovery, but more so

– Tenant/Operator must also do CapEx Recovery on the automation suite

– Trying to do CapEx Recovery by marking up the costs of a shrinking labor pool is tough

– Tenant /Operator must have some sort of MAG from the liner(s) – a very different economic model

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Public and Private

• Rather than a clean division: Public Port and Private Operator, Public CapEx and Private OpEx

• We have more of a mixing of public and private investment

• Public-Private Partnerships are becoming more common…

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Public Private Partnerships

• Are becoming more common as port authorities encounter more financial limitations

• Result in the terminal operating company getting involved with port facility development

• Result in the terminal manager getting involved with oversight of design and construction

• Result in the need for new skills, expertise, and discipline in the terminal staff

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Ports America’s current PPPs

• Oakland: 50 years Densification & Automation

• Newark: 30 years 50 Acre Expansion

• Baltimore: 50 years 4th Berth

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Outer Harbor, Oakland

Port Newark, Newark Bay

Seagirt, Baltimore

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Oakland, Outer Harbor PPP

• Focused on creation of “Mega Terminal” for bigger ships, and rehabilitation of Port’s oldest infrastructure

• All infrastructure and rehab to be paid for by Tenant, in exchange for lighter lease terms

• A shift of the Port’s traditional capital role to the Tenant

• The Tenant’s “CapEx Recovery” to be achieved with lower lease operating costs on a very long lease

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Ports America Investments in Oakland

• New entry complex, exit complex

• New data center and conduit trunks

• Major pavement reconstruction and re-grading

• Demolition of old marine building, gate building, administration building, storage buildings

• Construction of new automobile parking area

• Installation of new backup power

• Construction of shore power capacity for ships

• Installation of new terminal lighting system

• More to come, including planned automation

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New Entry Gate

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New Exit Gate

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Traffic Optimization

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Seagirt, Baltimore PPP

• Focused on “New Panamax” capability by 2014 to coincide with Panama Canal widening

– New Berth IV with 50 foot dredge depth

– New Super Post-Panamax cranes

• To be purchased by the Tenant, in exchange for lighter lease terms

• A shift of the Port’s traditional capital role to the Tenant

• The Tenant’s “CapEx Recovery” to be achieved with lower lease operating costs on a very long lease

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Page 29: Container Terminal Planning & Operations Current …...Container Terminal Planning & Operations Current and Coming Trends AAPA Marine Terminal Management Training Seminar September

Ports America Investments in Baltimore

• New 1200’ deep-water berth and mooring dolphin

• Rehabilitation of the terminal containment dike

• Installation of new drainage control structures

• Dredging of the berth area to 50 foot depth

• Purchase and installation of four new dock gantry cranes

• Construction of a satellite chassis operating yard

• Augmentation of the terminal power grid

• More to come, including new buildings

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New Wharf

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Four New Cranes

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PPP Benefits

• Development is accelerated, and made cheaper, by Tenant’s profit motive

• Development is better tuned to the Tenant’s specific needs

• Development is less politicized

• Development and operating costs can be better balanced

• Development can better reflect Tenant’s investment in new operating technologies

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PPP Challenges

• Tenant inherits “archaeology”

• Tenant’s staff may not be as adept at the ins and outs of development

• Port retains authority in permitting, but not responsibility for costs incurred

• Continued influence of Port’s “social engineering” efforts

• Perceived inequities between different Tenants

• Development more site-local than regional-strategic

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To Conclude…

• Pressure for augmented capabilities and capacities continues

• New technologies will require reconsideration of traditional roles and funding methods

• Funding is tight

• Creativity in funding and development is needed

• The role of the terminal manager is expanding from operations to development

• Privatization is causing many paradigm shifts

• Flexibility is needed on all fronts

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